Remortgages become Popular as Buy to Let Investors Expand Portfolios

26 September 2012 Categories: News

Remortgages become Popular as Buy to Let Investors Expand Portfolios

Buy to let investors are continuing to see the potential of the private rental sector and are expanding their portfolios accordingly, but figures released by Haart Financial Services show that buy to let mortgage holders are now choosing to remortgage their existing properties rather than apply for new mortgages.

The research, conducted by estate agent, haart, showed that more remortgages were applied for in the month of August than in any other month this year.  In addition, it turns out that over 62% of buy to let investors were opting for the slightly more expensive fixed rate buy to let mortgage packages rather than the flexible and discounted options that are normally more popular – the highest percentage recorded for some time.

Buy to let investors and landlords across the country are currently seeing a period of high profits and low rent arrears which almost certainly accounts for the boom in portfolio expansions. Managing director of haart Financial Services, David Miles, commented “Our latest figures show that experienced landlords are happy to continue to invest in property by expanding their portfolios to meet the high tenant demand in many areas of the country.”

He then went on to say “It is also interesting that some homebuyers are using the equity in their current properties to invest in buy to let for the first time.”